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Hospitality & Entertainment Customer Journey

The rise of EATertainment

02/17/2022

by Christine Farha

The Modern-Day Consumer

In 2021, more than 2 billion people made an online purchase. With e-commerce reaching new heights and consumers experiencing unprecedented access to goods, people are rethinking their desires and, as a result, are pivoting to seek out experiences. But not just any experience will suffice. To match or outdo the ease of e-commerce, consumers are specifically seeking experiences that provide them with quality, convenience, and value – a “one-stop-shop.” That’s where eatertainment comes in.

Eatertainment Explained & Why It’s Here to Stay

Eatertainment emerged in the late ’70s and early ’80s with establishments like Chuck E. Cheese and Dave and Buster’s. It continued to evolve in the following decades and is now a key component of the trend where consumers, especially millennials, value experiences over products. As this sector grows, it continues to differentiate itself by emphasizing quality, which is reflected in the food, drinks, atmosphere, and experience.

To the naked eye, the attraction to this concept may seem obvious: curated cocktails, clean eating, and exciting games. But the truth is, consumers seek connection through shared experiences. Psychological Science conducted a study and discovered that “sharing experiences—even with a complete stranger—makes people rate those experiences as more intense than people who underwent them alone.”

Eatertainment also adds value in the form of access. Golf, for example, is a costly experience. To participate, you need course access, golf clubs, golf balls, and more. Topgolf offers a less expensive, beginner-friendly alternative by providing everything you need in one gamified, approachable place. That’s why it’s no surprise that 51% of Topgolf visitors are non-golfers.

Pitfalls of Traditional Dining

Eatertainment has been able to avoid many of the pitfalls of traditional dining due to its focus on quality and the customer experience. Many established restaurants have struggled to evolve alongside consumers’ increasingly sophisticated desires. Subway, Buffalo Wild Wings, and Chili’s are among many that have scrambled in recent years to get consumers to see them as evolving alongside them via efforts such as rebranding. In 2017, Chili’s stock plummeted 40% despite their rebranding efforts.

By going beyond typical food and beverage service to offer novel experiences, eatertainment venues gain access to opportunities to serve consumers that traditional restaurants would not be equipped to handle e.g., corporate events, birthday parties, and large group outings. The ability to serve a wider consumer base is all the more critical due to an increase in anticipated restaurant closures.

The Secret Sauce to Success

The demand for eatertainment is undeniable. From 2010 to 2019 experiential dining grew 44.7% in malls and 68.5% in non-mall settings. While the business case is rock solid, the real question is how to rise to and stay at the top. The answer is by embracing digital transformation to enhance the customer experience.

How is technology intertwined with the daily operations of an eatertainment enterprise? Here are some key areas to consider:

1. “Ac-tech-vities”: Eatertainment venues can reimagine activities by incorporating proprietary technology to create a new experience. For example, Topgolf uses copyrighted radio-frequency identification (RFID) technology in all their golf balls to trace the flight path of the ball and relay it to the player. Industry trailblazer Flight Club has a fully integrated darts experience that allows groups to compete in challenges with their friends on the other side of the venue. While several eatertainment venues do not incorporate technology in their activities, those that choose to embrace digital transformation continue to establish themselves as leaders within the industry.

2. Guest-Focused Software: Selecting the right software is key to providing a seamless and curated guest experience.

• Seamlessness can easily be achieved by giving guests some of the “power.” The use of digital devices allows guests to have a hand in their fate, or, more accurately, the fate of their orders. With a few clicks they can hold the sauce on their brisket slider or quickly split the check 12 ways. Easy peasy!
• Once guests get a taste of a seamless experience, eatertainment venues can level-up and focus on personalization. Oche, a gastropub with a digital darts experience, uses proprietary software to track members’ gaming, food and beverage preferences, personality traits, and interests. Collecting this valuable data enables both employees and the software to provide a personalized experience for each guest.

3. Real-Time Updates: Employees also benefit from the flexible software by being able to effortlessly manage menus, tables, reservations, and more.

Survival of the Tech-Savvy

As competition in the food and beverage and entertainment industries continues to grow fierce, more establishments will be forced to look for ways to create unique dining experiences to elevate the customer experience. Offering a means of entertainment to enhance dining experiences is inevitable. Looking to transform your technology in the eatertainment business? Reach out to one of our consultants using the form below to learn more!

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